Disney's Popularity Declines Among Political Parties After Kimmel Controversy

The public perception of Disney and its streaming service has experienced a dramatic decline, hitting low levels not seen in years, as a result of recent actions involving comedian Jimmy Kimmel. This downturn has affected opinions across the political spectrum, as detailed in an analysis by investment bank Jefferies.

Using data obtained from Morning Consult, Jefferies demonstrated a significant dip in favorable views for Disney as well as its Disney+ service, noting this drop to be the most severe in over two years. Notably, Democrats, who previously held more favorable opinions of Disney, showed an even more pronounced decline than Republicans, although both groups recorded substantial falls.

James Heaney, an analyst with Jefferies, mentioned in a memo to clients that Disney has recently faced significant controversy. Heaney also pointed out a recent increase in the cost for Disney+ as a contributing factor to the negative sentiment surrounding the brand.

Disney became a focal point for cultural debates after pausing Kimmel's late-night comedy aired on ABC due to remarks he made regarding a deceased conservative activist. This action came after a warning from Federal Communications Commission Chair Brendan Carr about potential repercussions for ABC's broadcasting license.

Heaney observed that Disney came under fire not only for Kimmel's incendiary statements but also for its rapid decision to halt and then resume his program. Among the critics were influential Hollywood figures, typically aligned with Democratic values, who accused Disney of capitulating to pressures from the Trump administration rather than defending free speech.

A review shared with Jefferies' clients illustrated a stark drop in Disney’s favorability ratings, divided between positive and negative among Democrats, Republicans, and the general consumer base, plummeting to practically null levels—the lowest since before 2024.

In addition, Disney announced a price hike for several subscriptions, increasing costs by $2 to $3, set to begin on October 21.

Heaney remarked that Disney's overall brand visibility reached its highest in two years. For Disney+, however, the increase was significantly more modest, which he suggested could be advantageous from a business standpoint under CEO Bob Iger's leadership.

Heaney acknowledged, "Disney is certainly taking a PR hit here," but also highlighted that the data suggests a less damaging impact on Disney+ compared to the brand as a whole, potentially mitigating large-scale cancellations of the streaming service.

Over the past month, Disney's stock has declined by 6%, leaving its stock figures in negative territory for 2025. However, Heaney maintained a positive outlook, reaffirming a 'buy' recommendation with a target price of $144, suggesting a nearly 30% potential increase from its closing value on Wednesday.